Demonstrations and protests ripped across Indonesia over the past week. Rocks were thrown at riot police wielding tear gas and water cannon, regional parliaments and police headquarters were set on fire, and the houses of legislators, including that of Finance Minister Sri Mulyani Indrawati, were targeted by looters, who were seen running off with designer handbags and even bathtubs.
The fury heightened after a video circulated of a 21-year-old motorcycle ride-hailing driver named Affan Kurniawan being hit by an armoured police vehicle, which rather than stopping then ran him over. Affan later died of his injuries in a Jakarta hospital.
The cause of the rage? The protests initially started outside the national parliament in Jakarta after reports that the country’s MPs had granted themselves a huge monthly housing allowance on top of their salaries. Coming at a time when a shrinking middle class is facing a cost-of-living crisis, youth unemployment is more than 16 per cent and the effects of President Prabowo Subianto’s populist policies that are meant to help the poor have not been fully felt, this lit the fire of anger against elites.
The latter, in the popular imagination, most certainly includes MPs, some of whom did not help their image by being filmed dancing in parliament after receiving these new perks, which also included a monthly rice allowance.
The streets are calm for now, but several people have died in what has been the worst violence the country has seen since the late 1990s. Indonesia has always been beset by terrible inequality. The advent of social media has only served to make the extravagances of the wealthy all the more obvious to those earning an average monthly wage of $400. Their discontent is an urgent challenge for Mr Prabowo – who, to his credit, acted decisively once the scale of the uproar became clear.
Last Friday, the day after Affan died, the President visited the family home to offer his personal condolences. Photos and film of Mr Prabowo hugging the young delivery driver’s parents, who were crying as he attempted to comfort them, were powerful and moving images of the former special forces general who has transformed himself into a kind of patriarch, by turns grandfatherly and stern, of the nation.
On Sunday, he gave a televised address in which he said the MPs’ perks – including the housing allowance – would be scrapped. While instructing the military and police to take firm action against arsonists and looters, he ordered an investigation into Affan’s death, and seven officers have been detained.
By Tuesday, the current situation was considered stable enough for Mr Prabowo to fly to China; having cancelled his participation at the Shanghai Co-operation Organisation gathering over last weekend, he arrived in Beijing in time for the Victory Day military parade on Wednesday morning.
Some may question the importance of these events. After all, demonstrations and protests are common in many South-East Asian countries, and the reported fatalities, while tragic, were confined to the single digits. But deadly riots have a special significance in Indonesia.
When commentators make comparisons to the late 90s, they are referring to the mass violence and civil unrest of 1998, which led to the resignation of then-president Suharto and the downfall of his New Order establishment that had been in power for 32 years. In a perceptive analysis, the veteran Malaysian journalist Wong Chun Wai wrote this week that protests in neighbouring Malaysia tend to be “a carefully negotiated message” from a majority middle class that doesn’t really want to rock the boat. In Indonesia, however, they are a “battle cry” that “have often carried the weight of national transformation”.
The Jakarta Post made the link explicit in an article titled “Not a ’98 repeat” on Monday. The editorial board commended Mr Prabowo’s Sunday address for having “struck several correct notes”.
Making all Indonesians feel they have a share of the country’s economic growth will be a battle
“He pledged respect for peaceful protest, cited international human rights conventions and openly condemned excessive police force,” they wrote. Noting that legislators had been rebuked for making arrogant statements about the riots, that the perks had been revoked, and that “wasteful overseas junkets” would also not be allowed, they said that the President had “also offered something rare in Indonesian politics: accountability”.
Going forward, however, Mr Prabowo has a lot that the country needs him to deliver while he must simultaneously negotiate a tricky balancing act. He is personally popular, enjoying approval ratings of 81 per cent, according to one survey in May. Legislators and elites are not. Anger at MPs has not so far transferred itself to the President, although insulating himself against a body in which his administration has a vast majority – and so can shape the order of business – may be a challenge.
Moreover, Mr Prabowo comes from an elite background himself. His father served as a minister under both Indonesia’s first two presidents, Sukarno and Suharto – the latter of whom was once his father-in-law (Mr Prabowo separated from Suharto’s daughter in 1998) – and his brother is a very wealthy businessman.
But by 2024, during his third – and ultimately victorious – run for the presidency, Mr Prabowo successfully projected an image of himself as a great uncle or grandfather of the nation, as I noted above. His confident ease with members of the public from all walks of life and winsome videos with his cats earned him a commanding 59 per cent of the vote against two rival candidates.
A president in such a situation can still distance himself from unpopular elites and legislators; indeed, Mr Prabowo did exactly that in his speech last Sunday. But there are many nettles he will have to grasp – including to tackle the country’s endemic corruption, institute any number of reforms and slash the “benefits” to which many officials and businessmen feel entitled – in order to deliver for the ordinary Indonesians who voted for him.
In his televised address, Mr Prabowo said that his government is “determined to always fight for the people’s interests, including those of the most vulnerable and marginalised”. Many of those showed their frustration and desperation last week. Bringing them back from the brink and making all Indonesians feel they have a share of the country’s economic growth will be a battle – and one perhaps harder than any Mr Prabowo faced in his years at the top of the military.
Command%20Z
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
WHAT%20ARE%20THE%20PRODUCTS%20WITHIN%20THE%20THREE%20MAJOR%20CATEGORIES%3F
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SECRET%20INVASION
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The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Wallabies
Updated team: 15-Israel Folau, 14-Dane Haylett-Petty, 13-Reece Hodge, 12-Matt Toomua, 11-Marika Koroibete, 10-Kurtley Beale, 9-Will Genia, 8-Pete Samu, 7-Michael Hooper (captain), 6-Lukhan Tui, 5-Adam Coleman, 4-Rory Arnold, 3-Allan Alaalatoa, 2-Tatafu Polota-Nau, 1-Scott Sio.
Replacements: 16-Folau Faingaa, 17-Tom Robertson, 18-Taniela Tupou, 19-Izack Rodda, 20-Ned Hanigan, 21-Joe Powell, 22-Bernard Foley, 23-Jack Maddocks.
RESULTS
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Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.
Abu Dhabi Sustainability Week
SUZUME
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Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
Dunki
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The Indoor Cricket World Cup
When: September 16-23
Where: Insportz, Dubai
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)